CHAPTER 4 REGULATIONS AFFECTING PIPELINES

• Jurisdiction: United States

Rights-of-Way How Right is Your Right-of-Way?
(May 1998)
CHAPTER 4
REGULATIONS AFFECTING PIPELINES
Rich Griebling
Colorado Oil & Gas Conservation Commission
Denver, Colorado

SPECIAL INSTITUTE ON RIGHTS-OF-WAY

ROCKY MOUNTAIN MINERAL LAW FOUNDATION

LUNCHEON PRESENTATION OUTLINE — MAY 4, 1998

RICH GRIEBLING — DIRECTOR, COLORADO OIL & GAS CONSERVATION COMMISSION

• Overview of Colorado Oil and Gas Resource Development

• Origin of Colorado Oil and Gas Conservation Commission (COGCC) Statute and Rules

• SB 94-177 Broadening of Statutory Charge

• § 34-60-103 (6.5), C.R.S., Definition of "Oil and Gas Operations"

— The definition can be read to imply that broad COGCC regulatory authority ends at "the installation of flowlines and gathering systems", i.e. that broad COGCC regulatory authority may not extend downstream. The statute is not clear on this question.

— The definition specifically provides for COGCC to regulate exploration and production wastes (E&P wastes) both upstream and downstream, as it includes "the generation, storage, transportation, or disposal of exploration and production wastes".

• COGCC Rules Potentially Affecting Rights-of-Way and Downstream Activities

— The 1100 Series rules cover the installation, reclamation, operations, maintenance, repair, and abandonment of flowlines that may fall within rights-of way. Flowlines are defined to end at the gas meter, oil loading point or LACT unit, or water loading point, discharge point, or injection wellhead. These rules do not address pipelines.

— The 900 Series E&P Waste Management rules cover several areas that could be applicable to rights-of-way including: sensitive area determination; pit permitting, reporting, lining, and closure; buried vessels; spill and release reporting, remediation (including surface owner notice and consultation) and prevention; site investigation, remediation and closure; allowable concentrations and sampling for soil and groundwater.

—Rule 710 may be applicable to rights-of-way as it requires financial assurance for gas gathering, processing, and storage facilities to ensure compliance with the 900 Series rules.

• Bottom Line: COGCC regulation of downstream activities in areas related to rights-of-way is generally restricted to the regulation of E&P waste.

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FLOWLINE REGULATIONS

1101. INSTALLATION AND RECLAMATION

a. Material.

(1) After June 1, 1996, materials for pipe and components shall be:

A. able to maintain the structural integrity of the flowline under temperature, pressure, and other conditions that may be anticipated;

B. compatible with the material to be transported.

C. a tracer line or location device will be placed adjacent to or in the trench of all buried nonmetallic flowlines to facilitate the location of such pipelines.

b. Design. Each component of a flowline shall be designed to prevent failure from corrosion and be able to withstand anticipated operating pressures and other loadings without impairment of its serviceability. The pipe shall have sufficient wall thickness or be installed with adequate protection to withstand anticipated external pressures and loads that will be imposed on the pipe after installation.

c. Cover.

(1) All installed flowlines shall have cover sufficient to protect them from damage. On crop land, all flowlines installed after June 1, 1996, shall have a minimum cover of three (3) feet.

(2) Where an underground structure, geologic, economic or other uncontrollable condition prevents flowlines from being installed with minimum cover, or when there is an agreement between the surface owner and the operator, the line may be installed with less than minimum cover or above ground.

d. Excavation, backfill and reclamation.

(1) When flowlines cross crop lands, unless waived by the surface owner, the operator shall segregate topsoil while trenching, and trenches shall be backfilled so that the soils will be returned to their original relative positions and contour. This requirement to segregate and backfill topsoil shall not apply to trenches which are twelve (12) inches or less in width. Reasonable efforts shall be made to run flowlines parallel to crop irrigation rows on flood irrigated land.

(2) On crop lands and non-crop lands, flowline trenches will be maintained in order to correct subsidence and reasonably minimize erosion. Interim and final reclamation, including revegetation, shall be performed in accordance with the applicable 1000 Series rules.

e. Pressure testing.

(1) Before operating a segment of flowline installed after June 1, 1996, it must be tested to maximum anticipated operating pressure. In conducting tests, each operator shall ensure that reasonable precautions are taken to protect its employees and the general public. The testing may be conducted using well head...